Another wave of selling pressure hit the cryptocurrency market on February 23 as Bitcoin struggles to regain the $ 49,000 level.
Data from Cointelegraph Markets and TradingView shows that Bitcoin came under severe pressure in the early hours of Tuesday’s trading, causing BTC to drop to $ 44,927 before buyers arrived to stem the slide.
Most altcoins and DeFi cryptocurrencies are now losing double digits deeper, and the price of Bitcoin (BTC) has fallen by more than $ 10,000 in the last 48 hours.
At the time of writing, BTC was trading at $ 48,600, reflecting a drop of 11% on the day, but according to Cointelegraph analyst Marcel Payman, professional traders have been keen to buy on deflation and take new long positions with leverage.
Today’s market downturn has overshadowed many positive developments of the cryptocurrency ecosystem, including news that Bitfinex and Tether had settled a case with the New York State Attorney’s Office and agreed to pay $ 18.5 million in compensation to New York State. The two sides also agreed to submit periodic reports on their properties.
Interest in North America’s first listed Bitcoin fund also continues to grow as the Bitcoin ETF’s target rose to $ 564 million in assets under management just five days after the fund launched. The materials also indicate that 2251 BTC will be added to the fund on February 23.
Downturn is a sign of a healthy market
Despite the market carnage, many cryptocurrency traders and professional investors view ongoing withdrawals as a necessary break, allowing overbought assets to re-test key fundamental support levels.
As Twitter user “Bitcoin Archive” noted, similar adjustments are similar in relation to the exchange rate and were common in the beef market in 2017, when “9 fell between 20-40%”. Despite these multiple deep corrections, the market is still up “20 times its previous high” during 2017.
Summarizing how things are doing today and where BTC is heading, Bitcoin Archive states:
We are now sitting 2.35 times on the previous ATH of 20k cycle. This gathering is just the beginning. ”
Traditional markets are in decline
Traditional markets also faced early selling pressure Tuesday morning, but managed to return to the green shortly after Fed Leader Jerome Powell confirmed that the Fed would maintain its current policies, including keeping benchmark interest rates close to zero and buying assets. For the current pace of price. $ 120 billion a month.
At the close, the S&P 500 and the Dow Jones Industrial Average rose 0.13% and 0.50%, respectively, while the Nasdaq index closed 0.50%.
Altcoin strikes, with the recent long flyers being the hardest hit
Bitcoin’s $ 13,000 drop in the past 48 hours has taken a heavy toll on the altcoin market, with several recent signs of decentralized finance (DeFi) bearing the brunt.
Crypto.com Coin (CRO) took 33% of the draw, while the DeFi Venus (XVS) Binance Smart Chain Protocol dropped 24% to trade at $ 58.63.
Several select projects were able to amplify the trend and deliver positive benefits on February 23, when new announcements for projects related to blockchain interoperability gave a much-needed boost to Level 2 tokens and cross-chain transactions.
Solana (SOL) shares rose 11.23% to $ 14.94 after the launch of the new Raydium Automated Market Maker protocol. Phantom (FTM) bonus also increased by 24% after the team announced a partnership with Yearn.finance and deployed a bridge across the Ethereum chain.